It seems like IKEA is in innovation mood. Are they transforming their business? Sure not, but at least the Swedish furniture discounter is releasing some both interesting and unexpected product these days. Just the other week we presented the upcoming UPPLEVA home entertainment system that is coming to stores later this year.

Today we take a look at the new KNAPPA Cardboard Digital Camera. Now the interesting thing comes – aside from the camera being a fun gadget, not many would go out of their way to go to IKEA to buy one of them. You also do not have to, because the KNAPPA camera will be given out for free at IKEA stores to promote their new PS Furniture Collection.

“Instead, limited numbers of the 4.13 x 2.56-inch (105 × 65 mm) camera will be given away in IKEA stores to promote the new PS 2012 furniture collection – with the aim being that shoppers will use it to share images of the furniture range in their own homes (though hopefully not still in hundreds of parts).

Designed by Jesper Kouthoofd, the recyclable camera is made out of one piece of folded cardboard which is secured by two plastic screws. A single circuit board holds all the electronics, camera sensor and integrated USB connector. There is a combined on/off and shutter button on the front – holding it down for a few seconds turns the KNÄPPA on or off and a “firm click” takes a photo.

The performance of the KNÄPPA isn’t likely to worry the likes of Nikon or Canon. It shoots decidedly lo-fi images (think a 2004 camera-phone) and IKEA jokes about the lack of functions in the promo video below – to use the “zoom function” you simply extend your arms, and “advanced image stabilization” involves resting the resting the camera on a chair.

Once 40 photos have been taken, users plug the 2.3 megapixel camera – billed as “the world’s cheapest digital camera” – into a USB port and transfer the images in the normal manner. Images can then be deleted from the camera by using a paperclip to press the delete button on the front for about five seconds.”